Diwali: Gold rises by Rs 360 on festival eve

NEW DELHI: Gold gained Rs 360 to Rs 32,485 per 10 grams in the bullion market here today, while silver rose by Rs 600 to Rs 62,100 per kg on sustained buying for the auspicious occasion of Diwali amid a firm global trend.

Sentiment remained bullish on heavy buying by retail customers and stockists for Diwali, considered to be an auspicious occasion in Hindu mythology for purchasing precious metals, traders said.

Gold has gained Rs 1,175 in last six trading days. Gold's rise in overseas markets to near its highest level in three weeks as investors focused on the US budget debate and a data showed Japan's economy shrank in the third quarter also supported the sentiment.

In Singapore, gold climbed 0.3 per cent to USD 1,736.75 an ounce, while silver advanced by 0.5 per cent to USD 32.76 an ounce.

Some investors also shifted funds from weakening equity to rising bullion further fuelled the upswing in both gold and silver.

On the domestic front, gold of 99.9 and 99.5 per cent purity spurted by Rs 360 each to Rs 32,485 and Rs 32,285 per 10 grams.

Sovereign followed suit and rose by Rs 50 to Rs 25,550 per piece of eight grams.

Silver ready strengthened by Rs 600 to Rs 62,100 per kg and weekly-based delivery by Rs 1,485 to Rs 62,400 per kg.

Silver coins, which are normally used for Diwali pooja and gifting purpose during the festival, too spurted by Rs 1,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.